Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:

	Rainier Company	Yakima Company
Materials inventory, May 1	$ 100,000	$ 48,200
Materials inventory, May 31	(A)	50,000
Materials purchased	950,000	710,000
Cost of direct materials used in production	938,500	(A)
Direct labor	2,860,000	(B)
Factory overhead	1,800,000	446,000
Total manufacturing costs incurred in May	(B)	2,484,200
Total manufacturing costs	5,998,500	2,660,600
Work in process inventory, May 1	400,000	176,400
Work in process inventory, May 31	382,000	(C)
Cost of goods manufactured	(C)	2,491,500
Finished goods inventory, May 1	615,000	190,000
Finished goods inventory, May 31	596,500	(D)
Sales	9,220,000	4,550,000
Cost of goods sold	(D)	2,470,000
Gross profit	(E)	(E)
Operating expenses	1,000,000	(F)
Net income	(F)	1,500,000

Instructions

1. For both companies, determine the amounts of the missing items (A) through (F), identifying them by letter.

   Answer

   Check Figure: B. Yakima Company, $1,330,000

2. Prepare Yakima Company's statement of cost of goods manufactured for May.

3. Prepare Yakima Company's income statement for May.